"The Outlook calls for low growth and rising inflation. Lets dump our stocks," says the first level thinker. " The Outlook stinks, but everyone else is selling in panic. Buy," says the second level thinker. Taken from the book that I recently read, The Most Important Thing by Howard Marks.
This Statement is just one of the parts of a second level thinking. As the current markets are suffering a blood bath, those second level thinkers are busy analyzing the prices at which to buy those stocks which are available at a bargain. On one hand where the traders are busy shorting the stocks for a short term gains, the investors are buying the stocks at a low price for mammoth returns in the future.
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